HUAWEI and HONOR Release New Goals for Dual Brand Strategy

[Hong Kong, April 3, 2019] -- Mr. Richard Yu, Executive Director, CEO of HUAWEI Consumer BG has announced the company's new strategic goals on his official Sina Weibo account:

1. HUAWEI will become the world's largest smartphone manufacturer
2. HONOR will become the 2nd largest smartphone manufacturer in China, and 4th in the world
3. The company will support HONOR in the development of cutting-edge products and continue its investments in technology innovation, channel distribution and retail strategies while maintaining a firm dual-brand strategy between HONOR and HUAWEI. Both brands will maintain a forward-thinking mindset and help create an intelligent, fully-connected world.

According to Mr. Richard Yu, he believes that "HUAWEI Consumer BG has arrived at a brand new stage," and that "HUAWEI and HONOR are likely to become the world's largest smartphone manufacturer this year."

These new goals come after the company has achieved all seven strategic goals set by Mr. Richard Yu in 2012, including:

HUAWEI's consumer business leads the company's revenue with an increase of 48.4%, outperforming HUAWEI's carrier network business. Last year, HUAWEI's consumer business achieved sales of RMB 348.9 billion, a year-on-year increase of 45.1%, making it the largest contributor to the company's revenue.

HONOR has cemented its leading position with strong growth, despite a global industry downturn. According to IDC, the global smartphone market recorded a 3.1% year-over-year decline in shipments in the first three quarters of 2018, but HONOR bucked that trend and achieved a 27.1% increase. Also, HONOR achieved a year-on-year (YoY) increase of over 170% in international sales in 2018. HONOR ranked No.2 in global online sales volume with a 29.4% increase YoY in 2018 [Source: IDC Worldwide Mobile Phone Tracker, 2018].

HONOR has launched a number of new technologies this year that showcase the brand's pioneer position in the industry, including:

• 3D TOF: The HONOR View20 includes a TOF (Time of Flight) 3D sensor in its rear camera system. With the added depth sensing, skeletal tracking, and real-time motion capturing capabilities enabled by this new sensor, the HONOR View20 is a remarkably slim-bodied 3D transformer with functions like 3D Motion-Controlled Gaming, 3D Shaping, and Magic AR.

• All-View Display: The HONOR View20 uses a 6.4-inch 2310p x 1080p display with 398 PPI. The new All-View display adopts an innovative in-screen camera design; it abandons the widely used notch design which occupies a relatively large area of the front panel and creates a very small hole with a diameter of only 4.5mm for the front camera. As a result, the HONOR View20 provides a striking viewing experience with an extraordinary 91.8% body-to-screen ratio. The 19.5:9 wide screen of the HONOR View20 is also close to the aspect ratio used in cinemas, providing an immersive movie-watching experience.

• 5G: HUAWEI and HONOR have been deeply involved in all three levels of network progress, from 3G to 4G, and now 5G: the first involves standard and core patent initiators; the second are those who provide and verify solutions that promote network development; the third are smartphone brands based on 5G solution providers as well as manufacturers of 5G application services who create all kinds of apps. HONOR has a head start in the tactical planning of 5G devices and plans to launch its first 5G mobile phone this year, according to Mr. George Zhao, President of HONOR, at Mobile World Congress 2019.

"HONOR is on the brink of yet another breakthrough and there is no slowing down for us. As the going gets tough, the tough get going. We'll treat each day as an opportunity to deliver greater value to our fans. For HONOR, the best is yet to come," said Mr. George Zhao.

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